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European green deal already benefits consumers
While some observers highlight the costs of decarbonizing Europe’s economy, the costs of climate inaction are far higher, and the green policies already in place are providing clear benefits. To achieve the structural transformation necessary for a more sustainable future, the European Green Deal must be implemented and strengthened
Agustín Reyna 9 Sep 2024

It has become something of a cliché to interpret the results of June’s European Parliament elections as a rejection of the European Green Deal and the policies associated with it. It’s also wrong: in her political guidelines for the next European Commission, president Ursula von der Leyen reaffirmed her commitment to the Green Deal, saying, “We must and will stay the course on all of our goals.”

This is the right approach. Europeans want a more sustainable future, and the Green Deal is a necessary – and highly beneficial – first step. For example, the European Union’s ban on sales of gasoline- and diesel-powered cars, which will come into force in 2035, is expected to deliver significant health benefits and could save hundreds of thousands of lives annually by improving air quality. Moreover, this deadline is likely to accelerate the adoption of electric vehicles (EVs).

While it has been argued that the 2035 deadline should be scrapped, doing so would fuel consumer uncertainty and undermine the green transition. Instead, the EU should focus on encouraging more consumers – with the right incentives and under competitive conditions – to choose EVs over internal combustion engines. This, in turn, would ensure that used EVs are available at affordable prices by the time the ban goes into effect.

Regrettably, misleading claims about the unpopularity of green policies have already led to the withdrawal of legislation aimed at halving pesticide use across the EU by 2030. Similarly, EU institutions have rolled back some of the climate-related requirements farmers must meet to receive subsidies under the bloc’s Common Agricultural Policy.

Slowing the EU’s green transformation would harm consumers. In fact, contrary to conventional wisdom, surveys conducted by the European Consumer Organization (BEUC) and the 44 independent consumer groups within our network show that Europeans are eager to embrace more sustainable lifestyles.

But, as BEUC’s 2023 survey finds, while most European consumers want to reduce their environmental impact, they often feel lost in a maze of misleading green claims and labels, underscoring the need for reliable information sources. The survey revealed that most consumers believe that polluting companies should be banned from making any green claims. Clearly, realizing the Green Deal’s full potential requires meeting consumer demand for genuinely sustainable products. Reversing course now would jeopardize this progress.

While there is still much work to be done, we must recognize that the Green Deal is already benefiting European consumers. Two of its key components – the Right to Repair and Ecodesign for Sustainable Products – are intended to enhance product longevity and efficiency, thereby reducing costs for consumers.

This is especially important for low-income consumers as Europe continues to grapple with a persistent cost-of-living crisis. In 2022, as energy prices skyrocketed, consumer groups found that the most energy-efficient appliances could save households up to €2,450 (US$2,700) on their annual energy bills. Even in more “normal” times, with energy prices back to more reasonable levels, European households can save between €650 and €1,800 every year on their energy bills thanks to ecodesign and energy labelling. To mitigate high energy costs, the EU also adopted rules that protect those who cannot pay their bills from having their electricity or gas disconnected.

Likewise, well-crafted policies like the EU’s tough auto-emissions standards have already improved air quality in towns and cities across the bloc, increased vehicle efficiency, and paved the way for clean-air zones.

But fostering a green, prosperous economy is a long-term project that requires additional legislation and the preservation of existing measures to guide consumers toward more sustainable choices. To promote sustainable and healthy food options, for example, policymakers must ensure that both domestic and imported goods meet the EU’s product requirements and that free-trade agreements align with the standards and values embodied by the Green Deal.

Accelerating the shift to zero-carbon transportation is essential. In a market dominated by large and heavy vehicles, the growing demand for smaller, more efficient and affordable EVs among low- and middle-income consumers creates a unique opportunity for domestic manufacturers. To make these cars accessible to more people, improving the second-hand market should also be a priority. This can be done by setting binding EU-level zero-emissions-vehicles targets for large corporate fleets (which will hit the second-hand market much faster than privately-owned cars). In addition to getting clean cars on the road, European policymakers must develop a public transport strategy that makes train travel within and between member states cheaper and more convenient.

Consumers also want – and deserve – the ability to invest their savings in ways that contribute to a greener future. So far, there are no minimum requirements to call an investment product “green” or “sustainable,” leading to greenwashing. By introducing clear requirements into the EU’s Sustainable Finance framework, policymakers could help consumers generate meaningful impact with their investments and thereby mobilize private capital to support decarbonization.

The costs of decarbonizing Europe’s economy, though significant, pale in comparison to the cost of climate inaction. The EU is already struggling to compensate farmers for drought-related crop losses, rebuild infrastructure damaged by devastating floods, and combat annual wildfires ravaging southern regions.

To be sure, achieving a just green transition will necessitate public support for vulnerable populations as they adapt to a more sustainable economy. That said, many of the Green Deal policies already in place provide tangible economic and health benefits that directly address consumers’ most pressing concerns.

Curbing Europe’s ambition to achieve a truly sustainable transition would only serve entrenched interests intent on blocking necessary reforms. The notion that consumers are indifferent to environmental concerns, or that climate action prevents policymakers from addressing other issues, is deeply misguided. To facilitate the structural transformation needed to build a sustainable and prosperous future, the European Green Deal must be implemented and strengthened.

Agustín Reyna is the director-general of the European Consumer Organization (BEUC).

Copyright: Project Syndicate